4.6 SR 06-16-2025The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
4.6
Meeting Date
June 16, 2025
Prepared By
Justin Femrite, Public Works Director/Chief Engineer
Item Description
Agreement 25-13: Sanitary Sewer and Storm Water
Revenue Adequacy Analysis
Reviewed by
Justin Femrite
Cal Portner
Tina Allard
Action Requested
Approve, by motion, executing Agreement 25-13 with AMKO Bond Services to complete a review of our
Sanitary and Storm Water rates.
Background/Discussion
As detailed in the Capital Improvement Plan, we have solicited quotations for an analysis of our sanitary and
storm water rates. This analysis will help determine how rates should be set for the next 3–5 years. The last
analysis was completed in 2021.
Two quotations were received and staff recommends awarding the work to AMKO Bonding Services. AMKO
was the most competitive with the pricing they provided.
Financial Impact
The total service fee of $10,000 would be split evenly between the Sanitary and Storm Water funds ($5,000
each).
Mission/Policy/Goal
Responsible for Every Dollar
Attachments
1. Elk River MN - Sanitary and Storm Sewer Rate Analysis June 2025
Page 91 of 637
June 4, 2025
Mr. Justin Femrite
Public Works Director
City of Elk River
19000 Proctor Road
Elk River, MN 55330
Re: Utility Rate Analysis Proposal
Justin:
Thank you for the opportunity to provide you with a proposal to perform a utility rate analysis for the City of Elk River’s
sanitary and storm sewer systems.
AMKO Bond Services, LLC (“AMKO” or “AMKO Bond Services”) is a North Dakota firm, headquartered in Fargo, ND, which
specializes in assisting its municipal clients with a variety of financial functions, including, but not limited to, utility rate
analyses, capital improvement planning, annual bond disclosures, payment processing, paying agent services, etc. Regardless
of the function being performed, we deliver effective results in a highly efficient manner, which helps keep our fees
reasonable for the client while exceeding expectations with respect to the client’s goals. Our Performance Promise demands
that we exceed our clients’ expectations, not just from the standpoint of delivering the project, as outlined, but by creating
an outstanding client experience throughout the effort.
AMKO is excited to have the opportunity to submit this proposal and, ultimately, to work with the City of Elk River on this
important rate analysis project and we hope that the detail provided in the attached scope of work delivers on our
Performance Promise.
If you have any questions or feedback, please do not hesitate to contact me, either by phone (701-367-4058) or email
(mark.deraney@amkoadvisors.com).
Thank you so much for the opportunity to submit this proposal and we look forward to your feedback in the near future.
Sincerely,
Mark Deraney
President, AMKO Bond Services
CC: Harold Lance
Page 92 of 637
CITY OF ELK RIVER, MN
Scope of Work Proposal
1. Kick-off Meeting 1 $200.00 $200.00
2.
a. Number of residential and commercial customers
b. Bulk customer information, if any
c. Water usage of various customers
3.
12 $200.00 $2,400.00
4.5 $200.00 $1,000.00
5.Develop projected revenue adequacy model for the next 5 years including,
not limited to, the following considerations:
a. Adjustments to rates based on classes of customers to meet
future system needs
b. Changes in population
c. Changes in water usage
d. Changes in expenses
e. Future capital improvement projects to water system
f. Anticipated debt to pay for capital improvement projects
g. Funding of reserves for the system
6. Review initial findings with the City's Public Works Director 2 $200.00 $400.00
7. Prepare Final Report for the City of Elk River 5 $200.00 $1,000.00
8. Present findings to the City of Elk River 1 $200.00 $200.00
9. Administrative items relating to Tasks 1 $200.00 $200.00
Total Estimated Hours Billed 52 $10,400.00
5 $200.00 $1,000.00
20 $200.00 $4,000.00
Develop and gather information request from City, including questionnaire
about water system to include, but not limited to:
Develop historical revenue adequacy model for the sanitary and storm
sewer systems for the last 5 to 10 years, accounting for any one-time
revenues or expenses.
Research existing and any potential future expenses of the systems to
adequately reflect any unusual future changes.
AMKO will not charge the City for travel time or expenses.
In order to alleviate concerns with respect to variability regarding the estimated hours applied to the project, and the
potential for a cost to the City that is greater than the scope of work suggests, AMKO will perform the analysis, within the
agreed-upon scope, for a maximum of $10,000.00. Additional fees beyond $10,000.00 would only occur if the City were to
request a broader utility analysis, or additional functions that would be outside of the scope of work. Should an additional
request or increase in scope occur, AMKO will prepare a revised task order for the City’s approval.
AMKO Advisors will work with the City and the Public Works Director to develop a timeline that can adequately account for
the required tasks, while meeting the expectations and needs of the City.
Page 93 of 637
CITY OF ELK RIVER, MN
Acceptance Page
The City of Elk River, MN hereby agrees with the preceding Scope of Services for its Sanitary and Storm Sewer Rate Analysis
and accepts the associated estimates and terms. The City thus wishes to engage AMKO Bond Services for the project, which
will begin immediately upon the execution of this Acceptance.
Date: _____________________________________
City of Elk River: AMKO Bond Services:
___________________________________________ __________________________________________
Mayor, John Dietz President, Mark Deraney
____________________________________________
City Public Works Director, Justin Femrite
Page 94 of 637